The prices of cryptocurrencies plunged on Tuesday, extending a downward trend that started in November from last year.
Bitcoin (BTC) fell below the level of critical support of $ 89,220, reaching an intra -day hollow of about $ 86,000.
Altcoins are even worse, with a play by Jasmy (Jasmy) Fall at $ 0.01683, its lowest level since November 5 and 72% below its peaks in 2024. Pepe (Pepper) and Dogine (DOGE)) also decreased by more than 8%, while the market capitalization combined with all the parts even followed by Coingecko fell below 60 billion dollars.
Three key catalysts behind the crypto accident
There are three potential catalysts for the current cryptography crash.
First, the market reacted negatively to the commitment of former president Donald Trump to impose prices on Canadian and Mexican products from March. These prices have been postponed for one month to allow negotiations focused on drug policies and immigration.
A 25% price on American imports would likely lead to higher inflation and slower economic growth, which exerts pressure on the federal reserve to act. The Fed has already indicated that it will only reduce interest rates when inflation is close to its 2%target. However, recent economic data show that chief and basic inflation figures are moving away from this objective.
Second, bitcoin and other cryptography prices decreases because American actions were mixed. The NASDAQ 100 index opened its doors about 0.55% while the S&P 500 index was almost flat. The DOW was up 0.36%. The weakness of the technology sector is probably due to the anticipation of the income market of the fourth quarter of Nvidia, which should provide an additional overview of the artificial intelligence sector.
The price of bitcoin flashes a sales signal
Third, Bitcoin and other prices of cryptography, including Pepe, Dogecoin and Jasmy, dropped further after BTC lit a sales signal on the daily graphic. The daily graphic shows that Bitcoin formed a double high model at $ 108,438 in December and January.
He has now broken below the neck at $ 89,136, confirming a downward perspective. He also moved below the 50 days and 100 days mobile averages. Continuous sale could push Bitcoin to the next level of key support at $ 73,725, the highest swing in March of last year, a drop of 18% compared to current levels. Such a decision would probably trigger other drops on the Altcoin market.
Uplining, there is still a chance that this crash is a false breakdown, similar to what happened on January 13, which finally led to a strong rebound.